meetings, xlf, u.s. banks. i think they're a sell. but get a bounce. thanks so much for watching. "mad money" with jim cramer starts right now. my mission is simple, to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere, and i promise to help you find it. mad money starts now about. >> hey, i'm kramer, welcome to mad money many welcome to cramerica. it's my job to teach and coach you, not just entertain. call me or tweet me at jim cram cramer. we're in a bad moment, nobody denies that. we have all sorts of things

going on. the fed may or may not be on hold tomorrow. if they decide to leave the european union could really disrupt the current european ord order. dow sinking 58 points. nasdaq losing .10. that begs the question, how bad is bad? is this bad any worse than previous bads? isn't it worth asking? especially the talk of a new bear market resonates to everywhere you go and listen. there are all kinds of bad, there are some you have to set up and take notice about like the dot com obliteration that began in 2000.

or the 2007 to 2009 great recession, where things fell apart. there was no assurance that the center would hold. you can never go wrong when talking stocks. >> not every bad is big bad. there are derivative declines. over there somewhere. it's a difficult problem to understand, to put in contest, and wrap up in a box with big paper and a bow. that's what we have right now a wave of fear that's lapping up on the shores. the wave is threatening to overwhelm their homes. i'm not trying to minimize the markets even though it's fallen a couple bucks. i don't think the fed will provokefully fireworks when it

speaks tomorrow. ignoring the fed is like ignoring the train. we do have to pin this decline, this particular selloff on europe. where everyone's frightened of the dreaded exit, the unknown world that could occur we don't know how britain will vote, the usual instruments that people gravitate too in times of fear are skeweding amazing and massive amounts of stress. we've imported all that doom and groom. when we're talking about the imported variety for that concern. i keep a touchstone on my desk with the lead headline that says u.s. stocks down 17% since the

april high. back then after noting the s&p was down 19.4% since april. the stock markets pay for record notes and investors blame the drop of european fears which are selling fears of a global recession. at that very moment, the journal went on, there had been and i quote, a warning from greece that it would fail to meet its government deficit targets this year, which reinforced a widespread concern that greece would default. a possible greek default. really scary. >> it just so happens that that day was the exact bottom. >> if you invested in the s&p 500 you came close to doubling your money.

who would be so stupid, who would be so reckless as to buy that day, not knowing if greece would default or not. the other leg issue of that day. the possibility of a default of that belgian french banking giant. the answer, someone with fortitu fortitude, that greece would hang on forever. fortitude can triumph over fear, on some of those occasions it can make you an awful lot of money. europe's a strange beast. back in 2011, we had to live through not one, but two rate hikes. we had to worry about acronyms like pigs. portugal ireland, italy and spain. they were teetering people awaited, lehman brothers like, no, lehman brothers ten times

over. now we're hearing the same warnings again. stocks sink like rocks every day. >> can i interject something we learn from 2011. >> in this country that's true. namely what we learn, european capitalism isn't like our capitalism, or certainly isn't as much as we prefend it to be. in the eurozone, they practice crony capitalism. where the governments work in tandem with their financial institutions, when they can be as loathsome as ours were. i ask you is the low interest environment here that any rational mind would think paul in comparison to the big scare in 2011. really worth running to the hills for? >> i don't think so.

>> the interest rate on the treasury bond sinks to a million. >> including those like utilities that have as much to do with brexit as they do the next exit. no way. should you be selling the stocks that have nothing to do with europe? >> i don't know. seems silly to me. >> all this comparison work doesn't mean a hill of beans, if today turns out to be october 1st or october 2nd that the joirnal was chronicling that day. you don't want to be one of those fools to rush in. to give yates a run for his money. it's not like we didn't have some real negative news out today. sin crony gave you a real symphony of whoa when this ge spin-off said the lows are going

to increase. that stock plunged 13%. it plunged down fellow credit card traveler expect multiple down grades which along with j.p. morgan led down -- as we get closer to this british vote whether to splash ties with europe. and we see oil go lower, which it will opinion remember that this bad isn't nearly as bad as some other bads we've been through. they all feel the same way. >> a long time watcher of your show. >> what's up? >> my question is on cvs. if the merger between rite aid and wall greens doesn't happen, how does that impact cvs? >> that's an interesting

question. i had not thought about this, the possibility. what would happen is, i think that you would go back to a ologopoly of pharmacies. cvs is going down because of its pharmacy management. g gym. >> will is it eventually come back, or should i cut my losses and sell. >> i think you got lucky and the stock bounced back. i didn't get the idea that they missed the quarter. the government changed regulations. i don't like that kind of granularity. luke in florida. luke? >> checking in from west palm. how's it going? >> i wish i were down there. >> i want to know what you think of the recent ipo. >> u.s. foods is so much so

expensive than cisco. and remember the words, if you buy after you found out about the position, you still beat the s&p 500 which is a hallmark of excellence performance. the staff broke out the college poetry class. as yates said, all empty souls tend toward extreme opinions. things are bad, but are they that bad? i don't think so. the housing sector seems to be on shaking foundation. with declines in companies like home depot and lowes. i'm always on the lookout for bull markets as you know much i may have found the next big buying opportunity. browsing the aisles 69 grocery store. stick around and see what's in my cart. is it time to start buying some beaten down drug stocks? i'll reveal my favorites in the space, why don't you stick with cramer.

what the heck is going on with the home improvement stocks. the group has been beaten to a pulp, and the pummeling continued today. even the stocks of the high quality companies shouldn't have been dragged down by the gravitational pool. home depot and lowe's are particularly ugly. why tonight we're going offer the charlottes with the help of sue smith. she happens to be the co-founder of explosive options.net. to get a better sense of what's going on with the home improvement names. despite the action, the broader

average is today, smith thinks that at least some, if not all these home improvement stocks could be ready to break out to the upside. namely sherwin williams, i think this is a bold and contrary call. first, let's start with a cautionary word about the kind of home improvement play that smith thinks you have to avoid for the moment. >> take a look at this rough one. now, today the stock pulled back below it's long term 200 day moving average. the average was 126. smith points out that the last couple times home depot pulled back back in january and february, it led to some very sharp rebound. meanwhile, the stock is incredibly oversold. so far so good, right? however, smith thinks that reaching out to grab home depot at these levels would be a mistake. why? too soon.

back in february, the stock gapped up from 121. the stock is in the process of filling in this gap, okay? we know that's not so good. meaning, won't be safe to buy until the trade is down to that level. you're talking about going down to hear. >> there are a lot of investors that got into home depot above 121, it's likely to trade back down to that level. smith expects the current breakdown to continue for at least a little bit. home depot has strong institutional support, pull backs she's looking for, probably won't last very long. take a look, those sure didn't, right? >> if you want to buy into the weakness, you're going to need to be quick. in short, smith thinks home depot is poised for a rebound. what about the home improvement stock smith prefers right away. take a look at the daily chart

of masco. after a roaring hire through the end of april. masco's been trading at a tight range. between 30.50 and 3i. however, thanks to tell's selloff, masco broke down below the low end of that range. let's put this story on its head. >> now i have to tell you, this is pretty bullish. that's only 1.50 below where it's traded. the oscillator shows that it's an extremely oversold territory many which is why smith is due for a rebound in a few days. that's also measuring buying and

selling pressure. >> smith thinks institution money managers are buying stock. just doing it very slowly. it's another important indicator plunging lower to levels where it bounced back in february. in short, if masco can hold. it's not by any means clear. but if it does, it's a dollar and a half above where it's training. what you probably want to do, you want to get a chance right in here. take a look at the paint company. it's doing acquisitions. it's holding up much better than it's home improvement piers. after the nice run february through april opinion sherwin williams is consolidating, it's not before to rollover. think of this as creating a

spring board for the next round. taking money flow pulled back. smith points out this happened on very light volume. the key to this dhart are the bowlinger bands. there's a term we haven't used a lot lately. that's the two green lines you can see above and below. the volatility tends to be cyclical. these bands have been attracted and the volatility has shrunk. it's a coiled spring ready to pop. you tend to see a volatility explosion. in the case of sherwin williams, she thinks this stock is headed higher. we're talking whirlpool. even though whirlpool hasn't been doing well lately,

technicians use to detect electra jiblgtry. stair stepping its way higher. the institutions that are big are buying and holder whirlpool. stocks currently at $175. smith says it can lock it's way up to 199. it can be a straight shot to 185. if it fills in the gap it made in late april, and i have to tell you, i don't know. >> in the wake of the eggly market wide selloff. the charge as interpreted suggested some of the home improvement places could be ready to rebound and roar higher. she likes masco, sherwin williams and whirlpool, it's too soon to reach for home depot.

my view with the fed on hold, i think this whole co hort could be a nice place to start buying, even as each one has a little bit of exposure toll make it a bad investment. the companies batting cancer, i'm focusing on the group that's fighting the disease in new and novel ways that can help you make some money. the former king of late night taught me a lesson on the market. don't miss what i learned from jay leno. cramer, you are super, you are awesome. >> i'm a first time investor. >> thank you for inspiring me to get into the game. >> i want you to know that you have transformed me.

sometimes the rally posts so hard, you have to wonder how it's overrated in the first place. >> followediers coffee and pillsbury. >> last thursday, the stock rocketed higher, almost 8% in one day. which is a gigantic move for a packaged food company. how did people miss the strength at jm smucker. didn't it have to be a good quarter? >>. >> just two months ago, i came out here and explained why smuckers had caught fire. rallying 24% in the previous 10 months. i told you the country's

strength was all about pet food that smucker wasn't getting credit for. at the time i said, this stock was worth buying. and over the next couple days, smuckers shares fell $5. giving you an amazing entry point. the stock will be bad at some point after that. smuckers reported a blow out quarter to end all blow out quarters last thursday. while i wonder why so many people fail to see this coming, smuckers posted a 66 cents earnings beat while that number was inflated even if you subject that out, the resulting 24 cent beat would be impressive. again by far the best -- if you exclude the gains from the pet

food acquisition that gave you a 5% percentage growth. that's pretty strong for a packaged food company. >> it goes on. came in at 37.7%. that was up an astounding 590 basis points year over year. they're operating margin is the percentage of sales left over. that came to 15.5%, that's another gigantic 590 basis points from last year. not only is smuckers selling more goods, it's becoming a heck of a lot more profitable company. the cash rose from 51% year over year. you have to remember that those numbers were bolstered by an acquisition. when you drilled that into smuckers specific product, it was coffee sales 9% year over year. smuckers u.s. retail consumer food business, a little less than stellar.

pet food translated into a monster earnings increase. the company's international food business delivered a sales increase. even better, smuckers gave fabulous guidance for their full 2017 fiscal year which just started. wall street was expecting 6.37 for the full year. 6.37. management forecasted 760 to 775 of earnings. totally unlike any other company in this group. i have to wonder, why were they such a surprise? think about it, package food companies are supposed to be boring, they're not the kind of stocks that were 8% higher. normally the analysts have a good handle on what the numbers would look like. this time analysts and investors both missed the clues. people either still think of smuckers as a humdrum peanut butter and jelly play, even though they get the bulk of

their sales from pet food. look at what the bears were saying going to the quarter, it has a huge impact on stock. goldman sachs had downgraded smucker from hold to sell. can you imagine? sell on april 3rd. let me quote the synopsis, it's so perfect, so fitting about how a stock goes up high. and it's -- it starts with, we believe sjm faces long term challenges as consumers in the recently acquired pet food company, and expect those issues to become apparent of recent distribution wins and input cost relief fade. fade. in other words, goldman was expecting pet food and coffee consumers to trade up to the middle of the road offerings. and they also think that management is being too optimistic from the synergies from the big pet food

acquisition. how did that bear work out for goldman. the company is killing it in coffee and pet food. that's part of the reason why the stock jumped so much, and i find the tradeup thesis highly questionable. the consumer wants value above all. quality coffee, and pet food brands at a reasonable price. do they really have to trade up? i mean, look, isn't this fine? i think it's fine. american. plus, when it comes to the big synergies, it turns out management wasn't being optimistic enough. smuckers called the integration seamless, it already integrated synergy. in fact, they have clear visibility on achieving synergies -- if you listen to the company's management rather

than the analysts, and believed in the company, you could have nailed last week's monster rally. if you listen to the naysayers, well, they gaffed you big time, led you astray. can the stocks continue to roar higher. smuckers is selling less than 19% earnings. it's cheaper than general mills, cheaper than campbells soup, hershey, kelloggs, craft/heinz. if you evalled 20 times next year's numbers, throw in the fact that smuckers 2017 guidance, i think you have a recipe for more upside. it's true the cost of coffee beans started to creep higher again. particularly in the last few weeks, that's going to hurt. particularly since smuckers cut its coffee price to may. the chart looks over bought up here. slammed below 140 about this is a good combo here. let me give you the bottom line.

wall street continues to underestimate j.m. smucker 37 it's possible you could get a better entry point. the whole market panic is going into britain's vote. think of this company. i'd buy some smuckers. this is exactly the kind of largely domestically oriented stock that you can own during times of incredible international turmoil. let's go to lou in pennsylvania. lou about. >> hey, jim, thanks for taking my call. going back and buying additional qualities. much like dollar cost averaging. >> it's undervalued by people. and then just average down. peter in florida. peter? >> i'm interested in fiesta restaurant group. frgi.

>> the restaurant groups have fallen out of favor big time. the people think the labor costs are going up. an food costs are going up. they're really not. the labor costs are higher, that company did have a problem and talked about the fact that some people were station away due to affordable care. their customers seem to be. i'll skip the whole smuckers name thing again. this was a great quarter for smuckers and exactly the kind of domestic story you can seek out in terms of international turmoil like we have now. much more mad money ahead. five-year cancer survival has increased from 30% in 1950 to 68% in 2010. as the hunt for a cure continues. i'm looking at the game

changers. you may know jay leno for his punch lines. what he told me today that changed my viewpoint. stick with cramer.

♪ using 60,000 points from my chase ink card i bought all the framework... wire... and plants needed to give my shop... a face... no one will forget. see what the power of points can do for your business. learn more at chase.com/ink

this has been a rough year for the biotech and pharma industries. now that the democratic primary has ended i think we're going to hear a lot less about the scurge of higher drug prices as hillary moves to the center. you may want to think about buying some beaten down drug stocks. the leaders of the pharmaceutical tech industries gather at the big american society of clinical oncology. many will release the drugs they're working on to fight cancer.

tonight because the stocks have at last cooled off. i want to talk to you about the winners and losers from this hugely important meeting where we're no longer dealing with the fact that some of them have jumped up. >> let's start with the winners, after another ugly day, you need something to hang your hat on. >> i think that bristol-myers came out of this conference smelling like roses. >> they defended the position in the immuno therapy business. bristol-myers is opdivo which was approved as a drug for melanoma a year and a half ago. bristol-myers presented some incredibly compelling lung cancer data. increased from 8% from those on chemo perpendicular think. now, the stock barely budged on the news, but bris tal myers has so many new indications for this drug, i continue to like this.

you know, i like bristol-myers. second winner is eli lilly. didn't expect this. the big on kalg conference. that's the latest results from the company's cdc, charlie, dick, kenny inhibiter. it's the kind of drug that inhibits the growth of cancer cells, this drug is a treatment for metastatic breast cancer. now, it's worth noting that pfizer already has a similar compound on the market that's designed to treat the same disease in the same way. their drug has a much better safety profile. associated with much lower rates of neutropinia. it's a terrible side effect if you already have cancer. i expect more good news here for lilly. while the jury is still out on

how effective their breast cancer drug will be when it comes to cancer, it's safer. it's pulled back a buck and a half since the conference. just today we got some more positive data on jardiens. that's lily's excellent diabetes formulation. a lot of people talked about this. goldman sachs did too. they got an approval for the new multiple myeloma drug. this is one that's really really focused on -- at the conference they presented a 61% improvement in progression free survivasurv. even better, not long after asco. j & j presented to the hematology conference, they presented information on the drug. the patients showed a 63%

improvement versus those who were taking just revlamid and dexamethazone. analyst analysts believe the government will allow j & j to use their drug. one more reason to own j & j. thanks to the amazing turnaround of outscores, really, because of this drug, that's been what's moving the stock from 110 to 117. the final winner for the big oncology con fab. this is a smaller biotech company. focused on immunotherapy. they take your white blood cells and then inject them back into you. at the conference, juneau presented positive results. first one called jcar 14. it showed an amazing 94%

complete response rate. a 50% complete response rate of non-hodgkins lymphoma. however, this drug still has some serious side effects. we also got phase one. jcar, an incredible 93% of the patients went into complete remission. and those who got juno, the remission rate was up 10%. juno has pulled back along with the rest of the market on no real news, sinking to $41 as of today. my view, if you want to speculate on biotech with an exciting anti-cancer franchise, it's got a lot going for it. you have to be patient, the people who trade these biotechs are all terrified of what could happen if we get a democratic

sweep in the november elections. how about the losers from the oncology conference. the big bust was a company that i kind of like. which reported some lackluster data on its phase three small cell lung cancer drug. it's now looking like a colossal over pay. that's why the stock has lost 8% of its value since its presentation. the drug stocks, we know they haven't been exactly on fire. the american society gave you new reasons to like bristol-myers, eli lilly, johnson and johnson and juno therapeutics. mad money is back after the break. sir! it's the president!

mr. president we're on mars. switch to a video call... sure, we can do that. congrat... picture from mars looks great. it's about time business communications caught up. go from an audio call to a video conference with the push of a button. vonage. business grade. people friendly.

it is time for the lightning rou round. and then the lightning round is over. are you ready? time for the lightning round, i'm going to start with doug. >> caller: boo-yah, jim.

i'm a 71-year-old retired banker, i consider myself a long term investor, i should live another five years i think. i have a 401(k) heavily overweighted in bank stocks, 27% in wells fargo. it's not doing very well. >> wells fargo, we don't like the bank stocks in particular, but we don't like the fossil fuels either. wells fargo yields more than 3%. trust is going to buy more, probably 45. let's go to john in florida. john. >> caller: hey, cramer, this is john from homestead. i'm a retired merrill lynch broker. i always respected your opinion. i've been buying a lot of industries, and i thought a lot of naked calls today. >> i'm not a fertilizer fan by any means.

that group is really glutted. the one who is recognizing the ag space -- i wish i could be more bullish, i can't be. i need to go to chris in california, chris? >> chris? >> hey, jim, boo-yah from oceanside california. >> i own nly. >> i have been blessing that one of late. i think we've really done a lot of things right. it's the only one in the high yield tonight really feel like it's doing the right thing. let's go to brian in massachusetts, brian? >> yes. >> go ahead brian. >> i'm getting a more bullish. indicates the natural gas liquids are doing a lot better. let's not overstay our welcome. i'm concerned about next week's verdict. going on with a chance to record. that can hurt all those stocks.

maggie in ohio, maggie? >> yes. mr. cramer, i'm calling from cleveland, the home of the cavs. >> okay. best of luck. >> caller: you recommended a while ago exel. >> yes. >> and they've had some successful trials. and the stock's been going up, it's a nice upward trend. what's your opinion? >> we caught a double on that. i'm not leaving it, i think they have more upside. thank you to adam for pointing that one out. it's a good opportunity in the biotech bible. bob in missouri, bob? >>. >> how are you, bob? >> buy, sell or trade.

>> what's that? >> caller: boeing. >> boeing i'm on the fence on right now, i tell you, if it you want aerospace, why not buy honeywell. why do we want boeing. >> caller: hi, this is nevin. >> how are you? >> caller: i'm good. i want to ask your opinion about gopro. >> no, still too early to buy gopro, they have to get their mo jo back and they don't have it. >> let's go to peter in texas, peter? >> what's going on. >> caller: what's your long term outlook on aig? >> i'm nervous. i spoke last week to peter hancock, we have to get out of these hedge funds. and by the way, i think chubb is a much better acting stock than i has it together. aig, you need to see a little

more cleanup. that is the conclusion of the lightning round. other than makg me move stuff, what are you working on? let me show you. okay. our thinkorswim trading platform aggregates all the options data you need in one place and lets you visualize that information for any options series. okay, cool. hang on a second. you can even see the anticipated range of a stock expecting earnings. impressive... what's up, tim. td ameritrade.

every once in a while you get a wakeup call about how gloomy things are out there. today's came in the form of jay leno, when he joined us on the

set of sqwak on the street. to celebrate the second season of jay leno's garage. after bantering about hose program, we wanted to know jay's thinking on a couple hotter topics. the guy who captivated millions of people late night, gave us a strong dose of medicine. optimistic medicine. and it tasted like a magic elixir. super toxic negativity. jay has one of the greatest car collections in the world. how could i not ask him about tesla? his instant reaction? i got one. fantastic car. he then went on to say, i don't understand why people attack this car, it's made in america by americans, it's built local, you know we're becoming like the british, we like noble failures more than we reward success. jay professed to not know why that is, and he went on to say, i think elan musk is thomas

edison or henry ford. i mean, against all odds, people think he makes 2500 cars a year. he builds 60,000. he sells more cars than porsche, and he went -- any time one has the slightest problem, this is terrible. someone who's test drove and ridden a tesla, i think jay is right. >> i don't quite understand why we don't celebrate entrepreneurship and success more in this country. >> it's really true, i have no idea how to value the stock of tesla, i do think we underestimate there are huge waiting periods to buy one. you can buy pretty much any other car you want in the blink of an eye tomorrow. he's one of the people who believes engineers. engineers will save the world. he noted that los angeles has millions more cars than it did

in 1972 with a tenth of the smog. why do i bring all this up now? because we often forget that there's such a thing as progress and progress can create a better world. progress is also the secret propellant behind stocks. and it's overlooked as regularly as jay says, that we overlook the successes of guys like elan musk. he puts a rocket in space, they show the one that blew up. some of the negative discourse is more political than financial. take a listen to this. >> i grew up in a different time, clinton was horny, bush was dumb, it was really simple. gore was a robot. it was pretty easy. >> now he went on to say, he's happy sitting on the sidelines in this particularly volatile political climate. wow! i mean, this from the man who was at one time, america's premiere entertainer. he didn't have to say anything poignant at all.

he could have shrugged inquiries off. a quick parody. he went there. i for one am glad he went there. we have gotten so negative on so much. it's become the backdrop on the whole stock market. the shroud has been draped over stocks for so long, it's hard to believe anything could ever go up, least of all elan rusk's rockets. as a reminder that getting too pessimistic -- the progress is worth celebrating. for those of you who want to celebrate in may, june, july, engineers have done amazing things. companies can create incredible products and stocks can go higher based on the simple notion that jay leno celebrated on his new york stock exchange pulpit. all he really had to do is say go watch jay leno's garage tomorrow. i take prilosec otc each morning for my frequent heartburn

because you can't beat zero heartburn! ahhh the sweet taste of victory! prilosec otc. one pill each morning. 24 hours. zero heartburn.

every year, the amount of data your enterprise uses goes up. smart devices are up. cloud is up. analytics is up. seems like everything is up except your budget. introducing comcast business enterprise solutions. with a different kind of network that delivers the bandwidth you need without the high cost. because you can't build the business of tomorrow on the network of yesterday.

msci chooses not to put the stocks in the chinese indexes. they don't trade like regular stocks that we have in america opinion and no i was atracted to ali babb about a last night. i do believe that you can own yahoo, which has a sizable position in ali babb about a, and the rest of the company is valued pretty much at zero. i think that att or one of these utilities is going to make a run at them. nobody likes the market. that's really the point. i don't want to be as pessimistic as others, we may miss some terrific opportunities. i like to say there's always a bull market somewhere, i promise to try to find it just for you. i'm jim cramer and i'll see you tomorrow.

male narrator: tonight on "west texas investors club"... [eagle shrieks] - the i-tap is an electronic draught beer dispensing system that me and my dad created. - if this product is all he says it is, he could revolutionize the beer industry. can you show me how the doggone thing works? - [laughing] - look at the foam! - oh, [bleep]. - i don't know about this. - i'm starting to freak out a little bit. - together we've created... both: beddy's! - it's a one-piece bedding unit. - these two girls have had no business experience whatsoever. - last year we made 1.8 million. [eagle cries] narrator: deep in the heart of texas, two men carved a fortune from a harsh and unforgiving land. butch gilliam transformed a humble machine shop